Budgeted total net current expenditure by local authorities in England totals £118.1 billion in 2011-12, compared with £121.2 billion in 2010-11, a decrease of 2.6%.

There has been a transfer of responsibilities between NHS and local government relating to adults with learning difficulties in long stay NHS institutions. As a result of this discontinuity between the two financial years (2010-11 & 2011-12), it is difficult to compare total net current expenditure.

36.4% of budgeted total net current expenditure in 2011-12 is on education, 18.0% on social care, 15.6% on housing benefits and 10.0% on police.

26.0% of budgeted revenue expenditure on a non-International Accounting Standard 19 basis in 2011-12 is estimated to be funded through council tax, 29.1% through formula grant and 44.0% through specific grants inside Aggregate External Finance and Local Services Support Grant.

In 2011-12 local authorities are budgeting to draw down £971 million from their reserves to finance their revenue expenditure.

This release provides budget estimates of local authority revenue expenditure and financing for the financial year April 2011 to March 2012. These estimates are on a non International Accounting Standards 19 (IAS19) & Private Finance Initiative (PFI) on an “Off Balance Sheet” basis except where stated otherwise.

This information is derived from Communities and Local Government / Chartered Institute of Public Finance and Accountancy (CIPFA) Revenue Account (RA) budget forms submitted by local authorities in England. This release is based on returns from all 444 local authorities in England that complete the return.

The release has been compiled by the Local Government Finance - Data Collection, Analysis and Accountancy division of Department for Communities and Local Government. Responsible Statisticians: Steve Melbourne and Mike Young

We welcome comments and suggestions for further improvement or about your experiences with this product. This may include comments on data quality, timing and the format of the statistics. Please contact us at: lgf1.revenue@communities.gsi.gov.uk

Contact points:

Press enquiries: Telephone 0303 444 0444 Email: press.office@communities.gsi.gov.uk Website: www.communities.gov.uk

Other enquiries: Telephone: 0303 44 44228 Email: lgf1.revenue@communities.gsi.gov.uk Local authority revenue expenditure and financing England 2011-12 budget

Contents

Table 1 Budgeted net current expenditure by service 2010-11 and 2011-12 5 Table 2 Budgeted revenue expenditure and financing on a non-IAS19 basis: 2010-11 and 2011-12 8 Chart A Budgeted total net current expenditure by service 2011-12 9 Chart B Budgeted financing of revenue expenditure 2011-12 9 Table 3 Financing of revenue expenditure since 2005-06 10 Table 4 Financing of revenue expenditure in 2011-12 by local authority classification 11 Table 5 Top five incomes from specific grants budget 2011-12 12 Table 6 Revenue expenditure per capita by region and local authority classification 13 Annex A RA11 General Fund Revenue Accounts Budget Estimates 2011-12 15 Annex B RA(SG11) Income from specific grants budget 2011-12 20 Annex C1 Derivation of service lines used in Table 1 21 Annex C2 Derivation of service lines used in Table 2 22 Annex D Survey Design for collecting Revenue Accounts (RA) Budget Estimates in 2011-12 23

Terminology used in this release 24 Data quality 27 Uses made of the data 27 Background Notes 28 Symbols and conventions 28 Budgeted net current expenditure by service

1. Budgeted net current expenditure in 2011-12 is summarised in Table 1 and Chart A. Table 1 also shows budgeted net current expenditure in 2010-11 and the percentage change to 2011-12. Service expenditure is based on information from the RA forms, which can be found in Annex A. The service breakdowns have been created from this detailed information, according to Annex C1 of this release. It should be noted that year on year comparisons may not be valid due to local government changes in function and responsibility.

| Total Net Current Expenditure | |-------------------------------| | • Budgeted total net current expenditure by local authorities in England totals £118.1 billion in 2011-12, compared with £121.2 billion in 2010-11, a decrease of 2.6%. | | • There has been a transfer of responsibilities between NHS and local government relating to adults with learning difficulties in long stay NHS institutions. This was first announced on 1st April 2009, where Primary Care Trusts (PCT’s) and Local Authorities (LA’s) negotiated funding locally. However, the first time it impacted local authority accounts was from 1st April 2011, when the transfer of funding was made directly from Department of Health to LA’s. In 2011-12, local authorities expected to receive a new unringfenced ‘Learning Disabilities and Health Reform’ grant, amounting to £1.2 billion, to finance this responsibility. Due to this discontinuity between the two years (2010-11 & 2011-12), it is difficult to compare total net current expenditure. | | • 36.4% of budgeted total net current expenditure in 2011-12 is on education, 18.0% on social care, 15.6% on housing benefits and 10.0% on police. |

Public Services - Net Current Expenditure

• In 2010-11 revenue expenditure funded from capital by statute (RECS) was included in net current expenditure across the service lines, although the aggregate of RECS (£1,070 million) was adjusted out of total net current expenditure. In 2011-12 RECS was not included in net current expenditure. Therefore comparisons between the two years are not absolute.

• There has been an overall decrease in budgeted net current expenditure across all public services, between 2010-11 and 2011-12, with the exception of Adult Social Care services, which is expected to increase from £14.4 billion to £14.9 billion, an increase of 3.2%. This relates to the transfer of responsibilities between NHS and local government for adults with learning disabilities.

• Budgeted Net current expenditure on education services has reduced by 6.4%, from 2010-11 to 2011-12. This is largely owing to a reduction in secondary school expenditure from £18.1 billion in 2010-11 to £15.6 billion in 2011-12. This has been impacted on by a number of secondary schools moving to academy status, where academies are directly funded by central government and are independent of local government control.

• Budgeted Net current expenditure on transport services has reduced by 20.7%, from 2010-11 to 2011-12. This is largely owing to a reduction in net current expenditure for public transport - support to operators by Greater London Authority from £1.9 billion in 2010-11 to £1.2 billion in 2011-12, a decrease of 39.9%. | Mandatory Housing Benefits

- Rent allowances (within mandatory housing benefits), which are paid to tenants of private landlords and registered social landlords, are expected to increase from £12.1 billion in 2010-11 to £13.9 billion in 2011-12, an increase of 14.8%.

| Table 1: Budgeted net current expenditure by service 2010-11 and 2011-12 (1) | £ million | |---|---| | **Net current expenditure** | **Net current expenditure** | **Change** | | **2010-11** | **2011-12** | **%** | | Education | 45,966 | 43,002 | -6.4 | | Highways & transport (2) (R) | 7,065 | 5,602 | -20.7 | | Social care | 20,857 | 21,201 | 1.6 | | of which: | | | | | Children and Families Social Care | 6,417 | 6,303 | -1.8 | | Adult Social Care | 14,439 | 14,898 | 3.2 | | Housing (excluding Housing Revenue Account) | 2,733 | 2,339 | -14.4 | | Cultural, environment & planning | 10,959 | 9,796 | -10.6 | | of which: | | | | | Cultural | 3,391 | 3,059 | -9.8 | | Environmental | 5,510 | 5,339 | -3.1 | | Planning and development | 2,057 | 1,398 | -32.1 | | Police | 12,165 | 11,840 | -2.7 | | Fire & rescue | 2,284 | 2,224 | -2.6 | | Central services | 3,644 | 3,525 | -3.3 | | Mandatory Housing Benefits | 16,640 | 18,448 | 10.9 | | of which: | | | | | Rent Allowances | 12,130 | 13,925 | 14.8 | | Rent Rebates to Non-HRA Tenants | 548 | 488 | -11.0 | | Rent rebates to HRA tenants | 3,962 | 4,035 | 1.8 | | Other services (3) | -34 | 82 | | | Reversal of revenue expenditure funded from capital by statute (RECS) | -1,070 | – | – | | **Total net current expenditure** (1), (2), (3) (R) | 121,208 | 118,059 | -2.6 |

(1) Total net current expenditure for 2011-12 is not comparable to previous years due to a change in responsibility between NHS and local government for adults with learning disabilities, where from 1st April 2011 the transfer of funding was made directly from Department for Health to LA’s, where they now receive a new non-ring fenced grant which amounts to £1.2 billion in 2011-12.

(2) The 2010-11 figure for Highways and Transport has been revised following changes proposed by Greater London Authority relating to removal of Business Rates Supplement income and the addition of Revenue Expenditure funded from Capital by Statute. This has contributed to the change in the total net current expenditure figure for 2010-11.

(3) The 2011-12 figure for net current expenditure now includes capital charges accounted for in internal & external trading services, therefore the 2010-11 ‘other services’ figure has been adjusted to take account of this. Furthermore, due to the changes in RECS, the 2010-11 total net current expenditure figure has been adjusted to exclude RECS, although it has not been possible to adjust the above service net current expenditure (i.e. Education, Highways and Transport) to remove RECS. Budgeted revenue expenditure and financing

2. Table 2 shows the link between the definitions of net current and revenue expenditure and how revenue expenditure is financed on a non-IAS19 basis in 2011-12. A more detailed breakdown of this information can be found in Annex A. Furthermore, derivation of the service breakdowns created for Table 2 are outlined in Annex C2. Chart B illustrates how budgeted revenue expenditure is to be financed on a non-IAS19 basis in 2011-12.

Revenue Expenditure

- Revenue expenditure on a non-IAS19 basis is budgeted to be £101.9 billion in 2011-12.

- 26.0% of budgeted revenue expenditure on a non-IAS19 basis in 2011-12 is estimated to be funded through council tax, 29.1% through formula grant (Revenue Support Grant, redistributed non-domestic rates and Police grant) and 44.0% through specific grants inside Aggregate External Finance (AEF) and Local Services Support Grant.

Central Government Grants

- Formula grant (Revenue Support Grant, redistributed non-domestic rates and Police grant) totals £29.5 billion in 2011-12.

- Specific grants inside Aggregate External Finance are estimated to amount to £44.6 billion.

- Local Services Support Grant is a new unringfenced grant paid under Section 31 of the Local Government Act 2003 to support local government functions. This is amounted to £189 million in 2011-12.

- The funding of central government grants has changed between 2010-11 and 2011-12. In 2010-11, central government grants amounted to £79.5 billion. This comprised of specific grants inside AEF, Area Based Grant and Formula Grant. In 2011-12, a large number of grants, previously in specific grants inside AEF and Area Based Grant, have now moved to Formula Grant and Local Services Support Grant. Therefore, in 2011-12 total central government grants funding was estimated to amount to £74.3 billion, which is a reduction of 6.5%.

Council Tax

- £26.5 billion is required to be raised locally through council tax to finance revenue expenditure. Of this, £4.1 billion will be paid into the collection fund as council tax benefit; local authorities receive a specific grant outside AEF to cover council tax benefit, in 2011-12 this is estimated at £4.4 billion and is included in revenue expenditure. The amount of council tax expected to be collected from domestic properties in England is £22.3 billion and of this £367 million will be paid to parish or town councils by Unitary Authorities, Metropolitan and Shire Districts to fund their expenditure.

Reserve Levels

- In 2011-12 local authorities are budgeting to draw down £971 million from their reserves to finance their revenue expenditure; of which £134 million relates to Greater London Authority. Historically, for reserves levels:

- In 2008-09 local authorities budgeted to draw down £1,204 million, with GLA contributing to £668 million of the draw down.

- In 2009-10 local authorities budgeted to draw down £1,635 million, with GLA contributing to £815 million of the draw down.

- In 2010-11 local authorities budgeted to add £10 million. This was a result of GLA adding £409 million to their reserves, due to an early cross rail funding (£1.2 billion) for TfL’s investment program, to be used in subsequent years. The remaining authorities budgeted to draw down £399 million from their reserves.

In 2011-12 for non-school reserves: 25.9% of local authorities in England are budgeting to add to their reserve levels, 67.1% to draw out from their reserves and 7.0% with no change. If comparing to 2010-11, 33.2% budgeted to add to their reserve levels, 59.8% budgeted to draw out from their reserves and 7.0% had no change.

Other Financing Items

- Capital financing costs in the 2011-12 budget amount to £4.2 billion, while £1.2 billion has been budgeted for capital expenditure charged to the revenue account (CERA), of which £0.7 billion related to Greater London Authority (GLA). In 2010-11, £2.0 billion had been budgeted for CERA, of which £1.6 billion related to GLA. Therefore if we exclude GLA, CERA has decreased from £434 to £432 million, between 2010-11 and 2011-12. This is a decrease of 0.5%.

- Interest receipts were estimated to be £390 million in 2011-12, compared with £424 million in 2010-11, which is a decrease of 7.9%. | Table 2: Budgeted revenue expenditure and financing on a non-IAS19 basis: 2010-11 and 2011-12 | £ million | |-----------------------------------------------|----------| | **2010-11** | **2011-12** | | **Net current expenditure non-IAS19** | **Net current expenditure non-IAS19** | | **Total net current expenditure** | 121,208 | 118,059 | | plus non-current expenditure | | | | Capital financing | 3,980 | 4,202 | | Capital Expenditure charged to Revenue Account | 1,993 | 1,171 | | Council tax benefit | 3,935 | 4,141 | | Discretionary Non-Domestic Rate relief | 29 | 29 | | Bad debt provision | 30 | 45 | | Flood defence payments to Environment Agency | 31 | 32 | | Private Finance Initiative (PFI) schemes - difference from service charge | 63 | 34 | | Appropriations to(+)/ from(-) financial instruments adjustment account (a) | -6 | 2 | | Appropriations to(+)/ from(-) unequal pay back pay account (b) | 21 | 10 | | less interest receipts | 424 | 390 | | less specific grants outside AEF (c) | 24,869 | 25,229 | | less Business Rates Supplement | 202 | 222 | | less Community Infrastructure Levy | – | 0 | | **Revenue expenditure** | 105,790 | 101,885 | | less Specific grants inside AEF (c) | 45,737 | 44,649 | | less Area Based Grant (ABG) | 4,679 | – | | less Local Services Support Grant (LSSG) | – | 189 | | **Net revenue expenditure** | 55,373 | 57,048 | | less appropriations from other revenue reserves | -10 | 971 | | less adjustments | 4 | 1 | | **Budget requirement** | 55,380 | 56,076 | | financed by: | | | | Revenue Support Grant | 3,122 | 5,873 | | Redistributed non-domestic rates | 21,516 | 19,017 | | Police grant | 4,374 | 4,546 | | General Greater London Authority (GLA) grant | 48 | 63 | | Other items | 65 | 126 | | **Council tax requirement** | 26,254 | 26,451 |

(a) Adjustments permitted by regulation to the revenue account charges for financial instruments. (b) The deferral of revenue account charges for unequal pay back pay as permitted by regulation, and the reversal of the deferral in the year that payment of the back pay is due. (c) Aggregate External Finance; see Background Notes for definition Chart A: Budgeted total net current expenditure by service 2011-12

- Education: 36.4%
- Social care: 18.0%
- Highways and transport: 4.7%
- Cultural, environment & planning: 8.3%
- Housing (non-HRA): 2.0%
- Police: 10.0%
- Fire & Rescue: 1.9%
- Central services (b): 3.1%
- Housing benefit (a): 15.6%

(a) Housing benefit includes mandatory rent allowances and rent rebates (b) Central services include courts and other services relating to administration costs for council tax and non-domestic rates collection

Chart B: Budgeted financing of revenue expenditure 2011-12

- Specific grant inside AEF: 43.8%
- Local Services Support Grant: 0.2%
- Council tax: 26.0%
- Revenue Support grant (a): 5.9%
- Redistributed non-domestic rates: 18.7%
- Police grant: 4.5%
- Appropriations from reserves (b): 1.0%

(a) Revenue Support Grant includes General GLA grant and ‘Other items’ (relating to amounts in respect of collection fund surpluses / deficits and community charge items for 2010-11, transferable from / to collection fund in 2011-12) (b) Appropriations from reserves includes cash drawn from school and non-school reserves and any inter-authority transfers in respect or re-organisation (e.g. transfer of funds between authorities in respect of boundary changes) 3. **Table 3** shows the funding of budgeted revenue expenditure in terms of government grants, redistributed non-domestic rates and council taxes from 2005-06 onwards. All years are produced on a non-IAS19 basis. This is because local authorities set their council tax with regard to their expenditure on a non-IAS19 basis. A fuller definition of IAS19 can be found in the **Terminology used in this release** section.

- In 2011-12, 54.3% of budgeted revenue expenditure on a non-IAS19 basis is estimated to be funded by government grants (including Revenue Support Grant, specific grants inside Aggregate External Finance, Area Based Grant, Police grant and General (GLA) grant), 26.0% by council tax and 18.7% by redistributed non-domestic rates.

| Year | Revenue Expenditure (£ million) | Government grants (£ million) | % of total | Redistributed non-domestic rates (£ million) | % of total | Council tax (£ million) | % of total | |------------|---------------------------------|------------------------------|------------|---------------------------------------------|------------|------------------------|------------| | Outturn | | | | | | | | | 2005-06 (a)| 84,422 | 45,838 | 54.3 | 18,004 | 21.3 | 21,315 | 25.2 | | 2006-07 (a)| 88,172 | 49,093 | 55.7 | 17,506 | 19.9 | 22,453 | 25.5 | | 2007-08 (a)| 92,384 | 51,656 | 55.9 | 18,506 | 20.0 | 23,608 | 25.6 | | 2008-09 (a)| 98,107 | 53,008 | 54.0 | 20,506 | 20.9 | 24,759 | 25.2 | | 2009-10 (a)| 103,404 | 57,883 | 56.0 | 19,515 | 18.9 | 25,633 | 24.8 | | Budget | | | | | | | | | 2010-11 (b)| 105,790 | 57,960 | 54.8 | 21,516 | 20.3 | 26,254 | 24.8 | | 2011-12 (b)| 101,885 | 55,320 | 54.3 | 19,017 | 18.7 | 26,451 | 26.0 |

(a) All figures produced on a non-Financial Reporting 17 basis. Sum of government grants, redistributed non-domestic rates and council taxes does not normally exactly equal revenue expenditure because of the use of reserves

(b) Produced on a non-International Accounting Standard 19 basis. Sum of government grants, redistributed non-domestic rates and council taxes does not normally exactly equal revenue expenditure because of the use of reserves

4. **Table 4** shows how revenue expenditure is financed by its various components, which include government grants, redistributed non-domestic rates and council tax requirement across different local authority classifications.

- Greater London Authority (GLA), proportionally, requires the lowest amount of council tax to finance their revenue expenditure, at 14.3%.

- If we exclude "Other Authorities", GLA has the highest percentage of revenue expenditure which is being financed by central government grants, at 70.2%. The second highest class of authorities being outer London Boroughs, at 58.0%. | Local Authority Class | Revenue Expenditure | Total | % of Revenue Expenditure | Total | % of Revenue Expenditure | Total | % of Revenue Expenditure | |-------------------------------|---------------------|-------|--------------------------|-------|--------------------------|-------|--------------------------| | Greater London Authority | 6,554 | 4,600 | 70.2% | 878 | 13.4% | 935 | 14.3% | | Shire Counties | 27,957 | 15,651| 56.0% | 3,473 | 12.4% | 8,642 | 30.9% | | Shire Districts | 3,168 | 536 | 16.9% | 962 | 30.4% | 1,549 | 48.9% | | Inner London Boroughs | 5,992 | 3,156 | 52.7% | 1,736 | 29.0% | 942 | 15.7% | | Outer London Boroughs | 8,697 | 5,043 | 58.0% | 1,528 | 17.6% | 2,077 | 23.9% | | Unitary Authorities (e) | 18,835 | 10,153| 53.9% | 3,513 | 18.7% | 5,037 | 26.7% | | Metropolitan Districts | 20,015 | 11,175| 55.8% | 4,511 | 22.5% | 4,165 | 20.8% | | Police Authorities | 8,746 | 4,436 | 50.7% | 1,846 | 21.1% | 2,352 | 26.9% | | Fire Authorities | 1,555 | 219 | 14.1% | 568 | 36.5% | 754 | 48.5% | | Other Authorities (f) | 366 | 351 | 95.9% | 0 | 0.0% | 0 | 0.0% | | ENGLAND | 101,885 | 55,320| 54.3% | 19,017| 18.7% | 26,451| 26.0% |

(a) Other items and use of reserves have not been included, although they part finance revenue expenditure. Therefore percentages would not add to 100% because of these missing elements. (b) Central Government Grants includes Local Services Support Grant, Specific Grants inside Aggregate External Finance, Revenue Support Grant, Police Grant and General GLA Grant. (c) Re-distributed non-domestic rates; business rates tax which has been paid into the non-domestic rating pool, and redistributed between local authorities on the basis of population, as part of the formula grant. (d) Council Tax Requirement is the amount local authorities expect to collect from all domestic properties within their boundary, including parish and town councils. (e) Unitary Authorities includes Isle of Scilly. (f) Other authorities comprise of Waste Disposal Authorities (WDA), Integrated Transport Authorities (ITA) and National Park Authorities. For WDA and ITA, the core financing of their service expenditure comes from Waste Disposal and Integrated Transport levies respectively, funded by their constituent authorities, which is already included in revenue expenditure. Budgeted income from specific grants

5. Table 5 shows the top five incomes from specific grants inside and outside Aggregate External Finance. Details on all income from specific grants can be found in Annex B.

- In 2011-12, Dedicated Schools Grant (DSG), which is ring-fenced, is budgeted to account for 78.1% of the income received by local authorities through specific grants inside Aggregate External Finance.

- In 2011-12, DSG is budgeted to account for 46.4% of the total income received by local authorities through central government grants (which include redistributed non-domestic rates). In 2010-11, DSG accounted for 38.7% of the income received by central government grants.

| Grants inside Aggregate External Finance | Line Reference | £ million | |------------------------------------------|----------------|-----------| | Dedicated Schools Grant (DSG) | SG line 102 | 34,483 | | GLA Transport Grant | SG line 221 | 2,594 | | Early Intervention Grant | SG line 158 | 2,213 | | Learning Disability and Health Reform Grant | SG line 312 | 1,170 | | The Private Finance Initiative (PFI) | SG line 545 | 698 |

| Grants outside Aggregate External Finance | Line Reference | £ million | |-------------------------------------------|----------------|-----------| | Mandatory Rent Allowances: subsidy | SG line 745 | 13,514 | | Council Tax Benefit: subsidy | SG line 741 | 4,446 | | Rent Rebates Granted to HRA Tenants: subsidy | SG line 747 | 3,513 | | Sixth Form Funding from Young People’s Learning Agency (YPLA) | SG line 716 | 1,920 | | Mandatory Rent Rebates outside HRA: subsidy | SG line 746 | 1,119 | Revenue expenditure per capita by region and local authority classification

6. Table 6 gives comparisons of revenue spending per capita across all the regions in England and local authority classification.

- In 2011-12, London has the highest amount of budgeted revenue spending per capita, at £2,743, across all regions in England. North West region was second highest at £2,032 per capita. South West has budgeted to have the lowest revenue spending per capita across all regions, at £1,676.

| REGION | Greater London Authority | Shire Counties | Shire Districts | Inner London Boroughs (c) | Outer London Boroughs | Unitary Authorities (d) | Metropolitan Districts | Police Authorities | Fire Authorities | Other Authorities (e) | ALL | |-------------------------------|--------------------------|----------------|----------------|---------------------------|-----------------------|-------------------------|-----------------------|-------------------|----------------|------------------------|------| | North East | – | – | – | – | – | – | – | – | – | – | 845 | | North West | – | 1,432 | 174 | – | – | 1,692 | 1,797 | 226 | 55 | 28 | 2,025| | Yorkshire & the Humber | – | 1,306 | 161 | – | – | 1,539 | 1,644 | 208 | 43 | 21 | 1,869| | East Midlands | – | 1,328 | 149 | – | – | 1,785 | – | 183 | 41 | – | 1,751| | West Midlands | – | 1,294 | 141 | – | – | 1,584 | 1,898 | 208 | 44 | 5 | 1,934| | East of England | – | 1,342 | 155 | – | – | 1,618 | – | 179 | 44 | – | 1,723| | London | 845 | – | – | 2,125 | 1,763 | – | – | – | – | 5 | 2,743| | South East | – | 1,340 | 149 | – | – | 1,575 | – | 181 | 42 | – | 1,723| | South West | – | 1,297 | 145 | – | – | 1,464 | – | 185 | 44 | – | 1,676| | ALL | 845 | 1,336 | 151 | 2,125 | 1,763 | 1,584 | 1,781 | 199 | 45 | 15 | 1,967|

(a) Figures per capita calculated using ONS mid-year 2009 population estimates. (b) Comparisons between different authority classes may not be valid due to variations in responsibility. (c) Inner London Boroughs include City of London. (d) Unitary Authorities includes Isle of Scilly. (e) Other Authorities include Waste Disposal and Integrated Transport Authorities. Detailed budget information

7. Annex A (RA11) and Annex B (RASG11) show all England detailed budget information in the same way as it is returned to Communities and Local Government. It forms the basis of the tables in this release. The notes, which accompany each form sent to local authorities, can be found at: http://www.communities.gov.uk/localgovernment/localregional/localgovernmentfinance/statistics/usefulinformation/formstimetable/revenueforms/

Service Net Current Expenditure

- Net current expenditure on road safety education and safe routes (including school crossing patrols) has decreased from £133 million in 2010-11 to £99 million in 2011-12, a reduction of 25.5%. This includes a reduction in Safety Camera’s and Road Safety Education & Training budgets, policy changes over spend resulting in a transfer of budget from revenue to capital and the termination of some existing road safety partnerships.

- Net income on congestion charging is expected to decrease from £186 million in 2010-11 to £115 million in 2011-12. This decrease in net income, between the two financial years, is primarily due to Greater London Authority (GLA), as a result of the impact of the ending of the western extension to the congestion zone in December 2010. Transport for London (TfL) has estimated that this would result in a loss of income of approximately £70 million per annum.

- Net income on parking services (off-street and on-street parking) is expected to rise from £551 million in 2010-11 to £569 million in 2011-12, which is an increase of 3.3%.

- Net current expenditure on Community Safety (which includes spending on crime reduction, safety services such as lighting in non-highways, provision of safety railing, providing home safety advice and CCTV cameras) has decreased from £503 million in 2010-11 to £389 million in 2011-12, a reduction of 22.7%. This is an impact of 58.1% of local authorities reporting a reduction in spending on community safety.

- Non-distributed costs related to retirement benefits, is expected to increase from £480 million in 2010-11 to £540 million in 2011-12, an increase of 12.4%. Some of this relates to a significant restructuring in local authorities and increases in redundancies across local government. For persons aged 55 or above, when made redundant are entitled to the early release of their accrued pension benefits, therefore this added to the normal expected early retirement benefits.

### Annex A: RA11 General Fund Revenue Accounts Budget Estimate 2011-12

| Education Services | Net current expenditure | Capital charges | Net total cost excluding specific grants | |--------------------|-------------------------|-----------------|------------------------------------------| | 110 Early Years | 2,459,762 | 51,168 | 2,510,930 | | 120 Primary schools| 17,519,757 | 985,101 | 18,504,858 | | 130 Secondary schools| 15,607,323 | 863,225 | 16,470,548 | | 140 Special schools| 2,596,529 | 88,935 | 2,685,464 | | 150 Services to Young People | 1,607,720 | 95,431 | 1,703,151 | | 160 Other School related Education Functions | 3,211,216 | 172,284 | 3,383,500 | | **190 TOTAL EDUCATION SERVICES (total of lines 110 to 156)** | **43,002,305** | **2,256,141** | **45,258,446** |

| Highways and Transport Services | Net current expenditure | Capital charges | Net total cost excluding specific grants | |---------------------------------|-------------------------|-----------------|------------------------------------------| | 210 Transport planning, policy and strategy | 288,477 | 76,929 | 365,406 | | 220 Capital charges relating to construction projects | - | 1,423,903 | 1,423,903 | | 230 Structural maintenance | 601,960 | 215,729 | 817,689 | | 247 Environmental, safety and routine maintenance | 944,558 | 222,098 | 1,166,656 | | 248 Winter service | 152,663 | 3,092 | 155,755 | | 249 Street lighting (including energy costs) | 515,043 | 21,586 | 536,629 | | 251 Traffic management and road safety: congestion charging | -115,236 | 19 | -115,217 | | 254 Traffic management and road safety: road safety education and safe routes (including school crossing patrols) | 98,900 | 25,326 | 124,226 | | 258 Traffic management and road safety: other | 277,214 | 50,662 | 327,876 | | 260 Parking services | -568,830 | 56,381 | -512,449 | | 271 Public transport: concessionary fares | 1,157,616 | 191 | 1,157,807 | | 275 Public transport: support to operators | 1,811,042 | 24,821 | 1,835,863 | | 276 Public transport: co-ordination | 443,860 | 543,958 | 987,818 | | 280 Airports, harbours and toll facilities | -5,499 | 8,375 | 2,876 | | **290 TOTAL HIGHWAYS AND TRANSPORT SERVICES (total of lines 210 to 280)** | **5,601,771** | **2,673,071** | **8,274,842** |

| Social Care | Net current expenditure | Capital charges | Net total cost excluding specific grants | |-------------|-------------------------|-----------------|------------------------------------------| | 311 Social care strategy - children | 1,014,022 | 8,697 | 1,022,719 | | 324 Children and Young Peoples Safety | 535,809 | 3,219 | 539,028 | | 325 Children's and families' services - asylum seekers | 109,398 | 654 | 110,052 | | 329 Children's and families' services - other | 4,643,430 | 37,896 | 4,681,326 | | 330 Social care strategy - adults | 73,635 | 3,407 | 77,042 | | 340 Older people (aged 65 or over) including older mentally ill | 6,961,981 | 80,884 | 7,042,865 | | 351 Adults aged under 65 with physical disability or sensory impairment | 1,496,248 | 13,223 | 1,509,471 | | 352 Adults aged under 65 with learning disabilities | 4,891,498 | 44,733 | 4,936,231 | | 353 Adults aged under 65 with mental health needs | 1,092,567 | 10,892 | 1,103,459 | | 375 Other adult social care - asylum seekers - lone adults | 51,352 | 121 | 51,473 | | 379 Other adult social care - other | 330,784 | 12,517 | 343,301 | | **390 TOTAL SOCIAL CARE (total of lines 311 to 380)** | **21,200,728** | **216,240** | **21,416,968** | | Service Description | Net current expenditure | Capital charges | Net total cost excluding specific grants | |-----------------------------------------------------------------------------------|-------------------------|-----------------|----------------------------------------| | **Housing Services (GFRA only)** | | | | | 409 Housing strategy, advice, advances, enabling, renewals and licensing | 304,438 | 166,646 | 471,084 | | 440 Homelessness | 285,117 | 14,091 | 299,208 | | 456 Housing benefits: rent allowances and rent rebates - discretionary payments | 47,670 | 279 | 47,949 | | 457 Housing benefits administration | 486,364 | 5,853 | 492,217 | | 460 Other council property - travellers' sites and non-HRA housing | 9,614 | 28,673 | 38,287 | | 475 Housing welfare: Supporting People | 1,174,003 | 1,117 | 1,175,120 | | 478 Other welfare services | 20,490 | 4,273 | 24,763 | | **490 TOTAL HOUSING SERVICES (GFRA only) (total of lines 409 to 478)** | 2,327,696 | 220,933 | 2,548,629 | | **Cultural and related Services** | | | | | 500 Archives | 40,867 | 2,074 | 42,941 | | 501 Culture and heritage (excluding Archives) | 500,723 | 72,030 | 572,753 | | 502 Recreation and sport | 762,784 | 236,418 | 999,202 | | 503 Open spaces | 783,328 | 76,859 | 860,187 | | 504 Tourism | 112,192 | 7,159 | 119,351 | | 505 Library service | 859,175 | 76,661 | 935,836 | | **509 TOTAL CULTURAL AND RELATED SERVICES (total of lines 501 to 505)** | 3,059,069 | 471,202 | 3,530,271 | | **Environmental and Regulatory Services** | | | | | 510 Cemetery, cremation and mortuary services | -21,321 | 15,855 | -5,466 | | 519 Regulatory services: Trading standards | 156,994 | 2,400 | 159,394 | | 520 Regulatory services: Water safety | 2,305 | 6 | 2,311 | | 521 Regulatory services: Food safety | 110,047 | 1,222 | 111,269 | | 522 Regulatory services: Environmental protection | 151,857 | 1,788 | 153,645 | | 523 Regulatory services: Private rented housing standards | 36,937 | 9,697 | 46,634 | | 524 Regulatory services: Health and safety | 48,144 | 491 | 48,635 | | 525 Regulatory services: Port health | 3,559 | 194 | 3,753 | | 526 Regulatory services: Pest control | 29,840 | 848 | 30,688 | | 527 Regulatory services: Public conveniences | 73,157 | 14,616 | 87,773 | | 528 Regulatory services: Animal and public health; infectious disease control | 103,342 | 1,494 | 104,836 | | 529 Regulatory services: Licensing - Alcohol and entertainment licensing; taxi licensing | 16,471 | 962 | 17,433 | | 531 Community safety (Crime reduction) | 192,605 | 4,376 | 196,981 | | 532 Community safety (Safety services) | 137,701 | 2,215 | 139,916 | | 533 Community safety (CCTV) | 58,560 | 12,917 | 71,477 | | 541 Defences against flooding | 20,796 | 4,160 | 24,956 | | 543 Land drainage and related work | 38,006 | 1,304 | 39,310 | | 547 Coast protection | 13,749 | 23,183 | 36,932 | | 550 Agriculture and fisheries services | -4,450 | 3,517 | -933 | | 570 Street cleansing (not chargeable to Highways) | 716,748 | 11,538 | 728,286 | | 581 Waste collection | 943,614 | 68,892 | 1,012,506 | | 582 Waste disposal | 1,927,031 | 31,920 | 1,958,951 | | 583 Trade waste | -4,144 | 1,751 | -2,393 | | 584 Recycling | 554,554 | 25,599 | 580,153 | | 585 Waste minimisation | 20,728 | 2,720 | 23,448 | | 586 Climate change costs | 11,923 | 165 | 12,088 | | **590 TOTAL ENVIRONMENTAL AND REGULATORY SERVICES (total of lines 510 to 586)** | 5,338,754 | 243,828 | 5,582,582 | | Planning and development Services | Net current expenditure | Capital charges | Net total cost excluding specific grants | |-----------------------------------|------------------------|----------------|----------------------------------------| | 591 Building control | 63,058 | 3,562 | 66,620 | | 592 Development control | 290,630 | 6,228 | 296,858 | | 593 Planning policy | 268,431 | 20,899 | 289,330 | | 594 Environmental initiatives | 84,278 | 9,818 | 94,096 | | 595 Economic development | 380,821 | 104,618 | 485,439 | | 596 Community development | 304,317 | 12,765 | 317,082 | | 597 Economic research | 4,982 | 14 | 4,996 | | 598 Business Support | 1,416 | 8,513 | 9,929 | | **599 TOTAL PLANNING AND DEVELOPMENT SERVICES** (total of lines 591 to 596) | **1,397,935** | **166,419** | **1,564,354** |

| 601 TOTAL POLICE SERVICES | 11,840,126 | 374,966 | 12,215,092 |

| 602 TOTAL FIRE AND RESCUE SERVICES | 2,224,221 | 114,415 | 2,338,636 |

| Central Services | | | | | 604 Coroners’ court services | 72,931 | 683 | 73,614 | | 605 Other court services | 2,931 | 860 | 3,791 | | 610 Corporate and democratic core | 1,526,773 | 114,724 | 1,641,497 | | 623 Local tax collection: council tax discounts - locally funded | 12,117 | 135 | 12,252 | | 625 Local tax collection: council tax benefits administration | 285,368 | 2,941 | 288,309 | | 628 Local tax collection: other | 288,658 | 4,824 | 293,482 | | 650 Emergency planning | 53,892 | 522 | 54,414 | | 675 Central services to the public: other | 298,447 | 39,213 | 337,660 | | 681 Non-distributed costs - retirement benefits | 539,540 | 5,963 | 545,503 | | 682 Non-distributed costs - costs of unused shares of IT facilities | 15,856 | 23,751 | 39,607 | | and other assets | | | | | 683 Non-distributed costs - depreciation / impairment of surplus costs etc | – | 32,972 | 32,972 | | 684 Non-distributed costs - Carbon Reduction Commitment Transactions (expenditure) (+) | 28,350 | 21 | 28,371 | | 685 Non-distributed costs - Carbon Reduction Commitment Transactions (income) (-) | -5 | – | -5 | | **690 TOTAL CENTRAL SERVICES** (total of lines 604 to 683) | **3,124,860** | **226,606** | **3,351,466** |

| 698 TOTAL OTHER SERVICES | 386,769 | 103,097 | 489,866 |

| 699 TOTAL SERVICE EXPENDITURE (total of lines 190, 290, 390, 490, 509, 590, 599, 601, 602, 690 and 698) | 99,504,230 | 7,066,920 | 106,571,150 |

### Annex A: RA11 General Fund Revenue Accounts Budget Estimate 2011-12 (continued)

| Description | £ thousand | |-----------------------------------------------------------------------------|------------| | **Net current expenditure** | | | 711 Housing benefits: rent allowances - mandatory payments | 13,925,432 | | 712 Housing benefits: non-HRA rent rebates - mandatory payments | 487,935 | | 713 Housing benefits: rent rebates to HRA tenants - mandatory payments | 4,034,762 | | 714 Housing benefits: subsidy limitation transfers from HRA | 4,319 | | 718 Contribution to the HRA re items shared by the whole community | 6,972 | | **Precepts and levies** | | | 721 Parish Precepts | 367,362 | | 722 Integrated Transport Authority levy | 0 | | 724 Waste Disposal Authority levy | 0 | | 727 London Pensions Fund Authority levy | 32,809 | | 728 Other levies | 26,789 | | 731 External Trading Accounts net surplus(-)/ deficit(+) | -198,619 | | 732 Internal Trading Accounts net surplus(-)/ deficit(+) | -27,960 | | 741 Capital charges accounted for in External Trading Accounts | -31,890 | | 742 Capital charges accounted for in Internal Trading Accounts | -92,906 | | 748 Adjustments to net current expenditure | 19,751 | | **749 NET CURRENT EXPENDITURE (total of lines 699 to 748)** | 118,058,986| | 754 Local tax collection: Council tax benefit paid to the Collection Fund | 4,140,737 | | 757 Local tax collection: Non-domestic rate relief - discretionary payments | 29,410 | | 759 Levy: Environment Agency flood defence | 31,544 | | 765 Capital expenditure charged to the GF Revenue Account (CERA) | 1,171,432 | | 771 Provision for bad debts | 45,078 | | 773 Provision for repayment of principal | 1,910,496 | | 776 Leasing payments | 10,526 | | 781 Interest: external payments | 3,097,860 | | 783 Interest: HRA item 8 payments and receipts | -817,116 | | **785 SUB-TOTAL (total of lines 749 to 783)** | 127,678,954| | 786 Interest and investment income (-): external receipts and dividends | -390,278 | | 788 Private Finance Initiative (PFI) schemes - difference from service charge | -34,380 | | 789 Appropriations to(+)/ from(-) financial instruments adjustment account | 2,256 | | 790 Appropriations to(+)/ from(-) unequal pay back pay account | 10,341 | | 791 Specific and special grants outside AEF [SG line 799 as income] | -25,228,796| | 792 Business Rates Supplement | -222,000 | | 793 Community Infrastructure Levy | 0 | | **795 REVENUE EXPENDITURE (total of lines 785 to 791)** | 101,884,858| | 796 Local Services Support Grant | -188,589 | | 797 Specific and special grants inside AEF [SG line 699 as income] | -44,648,575| | **799 NET REVENUE EXPENDITURE (total of lines 795 to 798)** | 57,047,692 |

### Annex A: RA11 General Fund Revenue Accounts Budget Estimate 2011-12 (continued)

| £ thousand | Net current expenditure | |------------|-------------------------| | 801 Inter-authority transfers in respect of reorganisation | -526 | | 811 Appropriations to(+)/ from(-) schools’ reserves | -68,292 | | 815 Appropriations to(+)/ from(-) other earmarked financial reserves | -615,397 | | 816 Appropriations to(+)/ from(-) unallocated financial reserves | -287,136 | | **830 THE BUDGET REQUIREMENT (total of lines 799 to 816)** | **56,076,344** | | 851 Revenue Support Grant | -5,872,955 | | 856 Police grant | -4,546,388 | | 858 General GLA grant | -63,419 | | 870 Redistributed non-domestic rates | -19,016,700 | | 880 Other items | -125,581 | | **890 COUNCIL TAX REQUIREMENT (total of lines 830 to 880)** | **26,451,301** |

### Financial reserves

| Financial reserves | At 1st April 2011 | At 31 March 2012 | |--------------------|-------------------|------------------| | 911 Estimated schools reserves level | 1,759,796 | 1,691,504 | | 915 Estimated other earmarked financial reserves level | 8,297,209 | 7,681,812 | | 916 Estimated unallocated financial reserves level | 3,362,966 | 3,075,830 | | 920 Prior Year Adjustments | -41 | |

### Capital Charges

| Capital Charges | 2011-12 | |-----------------|---------| | 931 Depreciation | 4,882,891 | | 933 Loss on impairment of assets | 632,499 | | 935 Credit for capital grants (a) | -568,057 | | 936 Revenue Expenditure funded from Capital by Statute | 2,119,587 | | **939 Total capital charges (total of lines 931 to 935)** | **7,066,920** |

(a) Where capital expenditure has been financed by capital grant, the grant is credited to the income and expenditure account over the useful life of the asset in the line with the depreciation charge.

## Annex B: RA(SG11) Income from specific grants budget 2011-12

### Grants inside Aggregate External Finance

| Grant Description | £ thousand | |----------------------------------------------------------------------------------|------------| | 102 Dedicated Schools Grant (DSG) | 34,482,509 | | 103 Pupil Premium Grant | 513,611 | | 158 Early Intervention Grant | 2,213,103 | | 221 GLA Transport Grant | 2,594,179 | | 231 Metropolitan Railway Passenger Services (include NEXUS Tyne and Wear Metro) | 188,156 | | 232 Mersey Travel | 89,122 | | 235 Local Sustainable Transport Fund | 17,060 | | 312 Learning Disability and Health Reform Grant | 1,170,373 | | 405 Housing and Council Tax Benefit Subsidy Administration Grant | 443,427 | | 481 Work Choice | 4,757 | | 484 Right to Control Trailblazers | 1,453 | | 514 Housing Growth & Housing Market Renewal Transitional Fund | 1,514 | | 543 Fire Revenue Grant | 18,298 | | 545 The Private Finance Initiative (PFI) | 697,721 | | 550 Council Tax Freeze Grant | 625,042 | | 573 Commons Pioneer Authorities | 14,539 | | 581 National Parks & Broads | 55,051 | | 611 Asylum Seekers | 128,582 | | 626 Olympic Safety and Security | 49,058 | | 631 Counter Terrorism | 430,350 | | 643 Neighbourhood Policing and CSOs | 321,652 | | 645 Royal Parks Policing Grant | 7,410 | | 647 Probation Loan Charges | 342 | | 698 Other grants within AEF (enter in memorandum box A below) | 492,509 | | **699 TOTAL REVENUE GRANTS WITHIN AEF (total of lines 102 to 698)** | **44,648,575** |

### Grants outside Aggregate External Finance

| Grant Description | £ thousand | |----------------------------------------------------------------------------------|------------| | 708 Further Education funding from Skills Funding Agency - other 19+ funding | 67,074 | | 713 Higher Education Funding Council for England (HEFCE) Payments | 18,385 | | 715 Adult and Community Learning from Skills Funding Agency | 264,210 | | 716 Sixth Form Funding from Young People’s Learning Agency (YPLA) | 1,920,205 | | 741 Council Tax Benefit: subsidy | 4,445,850 | | 745 Mandatory Rent Allowances: subsidy | 13,514,331 | | 746 Mandatory Rent Rebates outside HRA: subsidy | 1,119,380 | | 747 Rent Rebates Granted to HRA Tenants: subsidy | 3,513,410 | | 752 Housing Acts/ Urban Developments - contributions towards cost of loan charges| 376 | | 773 Rural Community Action Network (RCAN) | 0 | | 791 European Community grants | 28,729 | | 798 Other grants outside AEF (enter in memorandum box B below) | 336,845 | | **799 TOTAL REVENUE GRANTS OUTSIDE AEF (total of lines 708 to 798)** | **25,228,796** |

### 800 TOTAL SPECIFIC AND SPECIAL REVENUE GRANTS (total of lines 699 + 799)

| Grant Description | £ thousand | |----------------------------------------------------------------------------------|------------| | **800 TOTAL SPECIFIC AND SPECIAL REVENUE GRANTS** | **69,877,372** | | Line reference | Additional levies/transfers | |----------------|-----------------------------| | RA line 190 | Education | | RA line 290 | Highways and transport | | RA line 722 | Integrated transport authority levy | | RA line 390 | Social care | | RA line 490 | Housing (excluding Housing Revenue Account) | | RA line 714 | Subsidy limitation transfers from HRA | | RA line 718 | Contribution to HRA re items shared by whole community | | RA line 509 | Cultural | | RA line 590 | Environment | | RA line 724 | Waste disposal authority levy | | RA line 599 | Planning | | RA line 601 | Police | | RA line 602 | Fire & rescue | | RA line 690 | Central services | | RA line 721 | Parish precepts | | RA line 727 | London Pensions Fund Authority levy | | RA line 711 | Mandatory rent allowances | | RA line 712 | Mandatory rent rebates | | RA line 713 | Rent rebates granted to HRA tenants | | RA line 698 | Other | | RA line 728 | Other levies | | RA line 731 | External Trading Accounts net surplus/deficit | | RA line 732 | Internal Trading Accounts net surplus/deficit | | RA line 741 | Capital Charges accounted for in External Trading Services | | RA line 742 | Capital Charges accounted for in Internal Trading Services | | RA line 748 | Adjustments | | RA line 767 | Reversal of Revenue Expenditure funded from Capital by Statute | | RA line 749 | Total net current expenditure |

Only applicable for 2010-11, this line was removed in 2011-12 | Line reference | Additional Information | |----------------|------------------------| | RA line 749 | Total Net Current Expenditure | | RA line 773 | Capital Financing | | RA line 776 | Provision for repayment of principle | | RA line 781 | Leasing payments | | RA line 783 | Interest payments: external payments | | RA Line 765 | Interest: HRA item 8 payments and receipts | | RA Line 754 | Capital Expenditure charges to the Revenue Account | | RA Line 757 | Council Tax Benefit | | RA Line 771 | Discretionary Non-Domestic Rate relief | | RA Line 775 | Local Tax Collection, council tax benefit paid to the collection fund | | RA Line 778 | Local Tax Collection, non-domestic rate relief - discretionary payments | | RA Line 779 | Bad debt provision | | RA Line 780 | Flood defence payments to Environment Agency | | RA Line 781 | Private Finance Initiative (PFI) schemes - difference from service charge | | RA Line 782 | Appropriations to(+) from(-) financial instruments adjustment account | | RA Line 783 | Appropriations to(+) from(-) unequal pay back pay account (b) | | RA Line 786 | Interest receipts | | RA Line 791 | Specific grants outside AEF | | RA Line 792 | Business Rates Supplement | | RA Line 793 | Community Infrastructure Levy | | RA Line 797 | Specific grants inside AEF | | RA Line 798 | Area Based Grant (ABG) | | RA Line 796 | Local Services Support Grant (LSSG) | | RA Line 811 | Appropriations from other revenue reserves | | RA Line 815 | School reserves | | RA Line 816 | Other earmarked financial reserves | | RA Line 801 | Unallocated financial reserves | | RA Line 801 | Inter-authority transfers in respect of reorganisation | | RA Line 830 | Budget requirement | | RA Line 851 | Revenue Support Grant | | RA Line 850 | Redistributed non-domestic rates | | RA Line 856 | Police grant | | RA Line 858 | General Greater London Authority (GLA) grant | | RA Line 880 | Other items | | RA Line 890 | Council tax requirement | Survey Design for collecting Revenue Accounts (RA) Budget Estimates in 2011-12

During March 2011 until April 2012, all 444 local authorities in England were requested to complete the Revenue Accounts (RA) Budget form to show all net current expenditure, capital charges and net total cost transactions relating to their public service expenditure from their general fund revenue account. This also included financing elements of net current expenditure through levy payments, interest receipts, central government grants, use of reserves, council tax requirement and other non-current expenditure items such as; capital financing, capital expenditure charged to the revenue account and other forms of discretionary payments and provisions. Annex D shows the distribution of local authorities responsible for completing the RA Budget forms by classification and region.

Annex D: Distribution of Local Authorities by Region and Classification

| Region | Greater London Authority | Shire Counties | Shire Districts | Inner London Boroughs (a) | Outer London Boroughs | Unitary Authorities (b) | Metropolitan Districts | Police Authorities | Fire Authorities | Other Authorities (c) | ALL | |-------------------------|--------------------------|----------------|----------------|---------------------------|-----------------------|------------------------|----------------------|-------------------|----------------|------------------------|-----| | North East | 0 | 0 | 0 | 0 | 0 | 7 | 5 | 3 | 3 | 2 | 20 | | North West | 0 | 2 | 18 | 0 | 0 | 6 | 15 | 5 | 4 | 5 | 55 | | Yorkshire & the Humber | 0 | 1 | 7 | 0 | 0 | 5 | 9 | 4 | 4 | 4 | 34 | | East Midlands | 0 | 5 | 36 | 0 | 0 | 4 | 0 | 5 | 3 | 1 | 54 | | West Midlands | 0 | 3 | 19 | 0 | 0 | 4 | 7 | 4 | 4 | 1 | 42 | | East of England | 0 | 5 | 41 | 0 | 0 | 6 | 0 | 6 | 3 | 1 | 62 | | London | 1 | 0 | 0 | 13 | 20 | 0 | 0 | 0 | 0 | 5 | 39 | | South East | 0 | 7 | 55 | 0 | 0 | 12 | 0 | 5 | 5 | 2 | 86 | | South West | 0 | 4 | 25 | 0 | 0 | 12 | 0 | 5 | 4 | 2 | 52 | | ENGLAND | 1 | 27 | 201 | 13 | 20 | 56 | 36 | 37 | 30 | 23 | 444 |

(a) Inner London Boroughs include City of London (b) Unitary Authorities includes Isle of Scilly (b) Other Authorities include National Park Authorities, Waste Disposal and Integrated Transport Authorities Terminology used in this release

A list of terms relating to local government finance is given in the glossary at Annex G of Local Government Finance Statistics England No. 21 2011. This is accessible at http://www.communities.gov.uk/documents/statistics/pdf/1911067.pdf. The most relevant terms for this release are explained below.

**Aggregate External Finance** - is the total amount of grant provided to finance all local government expenditure, excluding that subject to separate arrangements under statutory schemes, rent allowances and rebates and council tax benefit, which are funded by specific grants outside Aggregate External Finance.

**Business Rates Supplement** is income which relates to specific projects expected to promote economic development. This includes income from levying a local supplement on the business rate and using the proceeds for investment in the local area.

**Current expenditure** - is the cost of running local authority services within the financial year. This includes the costs of staffing, heating, lighting and cleaning, together with expenditure on goods and services consumed within the year. This expenditure is offset by income from sales, fees and charges and other (non-grant) income, which gives total net current expenditure (line 749). Total net current expenditure also includes payments made by local authorities on behalf of central government, under statutory schemes and the payment of rent allowances and rebates. Such payments are fully funded by central government through specific grants outside Aggregate External Finance.

**Dedicated Schools Grant (DSG)** – there was a change in the funding of specific and formula grants in 2006-07 largely due to changes in the way that expenditure on schools is funded. From 2006-07, local authorities receive school funding through specific grant rather than funding previously included in formula grant.

**Appropriations to/from financial instruments adjustment account (line 789)**

**Appropriations to/from unequal pay back pay account (line 790)**

These are two new lines connected with the adjustments permitted or required by our regulations. The accounts show figures fully compliant with accounting standards, but regulations made by DCLG provide for adjustments to those figures to prevent unreasonable increases in council tax. The first line allows for adjustments connected with borrowing and investments, including the regulation on Icelandic banks investments. The second allows for the regulation that permits a charge for unequal pay back pay to be deferred until payments are due to be made (accounting requires a charge as soon as the liability is established).

**International Accounting Standard 19 (IAS 19)**

Local authorities are required to account for Employee benefits (pensions) in accordance with IAS 19 from 2010-11. This requirement is enshrined in the Code of Practice on Local Authority Accounting in the UK, published by the Chartered Institute of Public Finance and Accountancy (CIPFA) and in CIPFA’s Best Value Accounting Code of Practice (BVACOP).

Under IAS19 most of the pension schemes covering local government employees are classed as defined benefit schemes. The main implication of defined benefit status is that retirement benefits are accounted for on the basis of the retirement benefit entitlement to which employment in the year gives rise, rather than the cash amounts of employer’s contribution or pension due for the year. That is, the IAS19 pension liability will include all the total pension liabilities for all employees and not when the pension is.

The major exception to defined benefit status is the teachers’ pension scheme, which is administered centrally; local authorities account for this on a defined contribution basis, and the charges to service expenditure equal the employer’s contribution.

The defined benefit charges are not allowed to impact on council tax payers, the charge that must ultimately be carried by taxpayers is the employer’s contributions due for the year. Consequently, the effects on the revenue account are that the net current expenditure service lines are on a defined benefit basis, but the Budget Requirement is based on the cash contributions due. This neutrality is achieved by reversing out the impact of IAS19 and replacing this with the actual cash contributions.

The information excluding IAS19 that we collect on the form is critical for our key users. In particular, the Office for National Statistics use the information on a non-IAS19 basis for their key statistics on Public Sector Finances and National Accounts. The following table shows summary service expenditure on both an IAS19 and a non-IAS19 basis from the RA form.

**Local Services Support Grant** is a new unringfenced grant paid under section 31 of the Local Government Act 2003 to support local government functions.

**PFI schemes in accordance with the International Financial Reporting Standards (IFRS)**

Under the International Financial Reporting Standards (IFRS) the PFI schemes are brought ‘on balance sheet’. Local authorities have been required to account for their PFI schemes on the IFRS basis as from 2009-10.

For National Accounts purposes, however, PFI schemes should be accounted for ‘on balance sheet’ basis only where **economic ownership** of the asset rests with the Authority.

**Economic ownership** for national accounts purposes is determined by the same test as applies under UK accounting standards and hence that local authorities applied in preparing their 2008-09 accounts. The basis of that test was set out in Appendix E to the 2008 SORP, and depends on whether the local authority or the contractor has an asset of the property used to provide the contracted services. A party has an asset of the property where that party has access to the benefits of the property and exposure to the risks inherent in those benefits. | Service Description | Net current expenditure on a non-IAS19 & PFI "Off Balance Sheet" | Net current expenditure on IAS19 & PFI "Off Balance Sheet" | Net current expenditure on a non-IAS19 & PFI "On Balance Sheet" | |---------------------------------------------------------|-----------------------------------------------------------------|-------------------------------------------------------------|---------------------------------------------------------------| | 961 Education services | 43,002 | 42,966 | 42,748 | | 962 Highways, roads and transport services | 5,602 | 5,611 | 5,534 | | 963 Social care | 21,201 | 21,222 | 21,202 | | 964 Housing services (GFRA only) | 2,328 | 2,330 | 2,325 | | 965 Cultural and related services | 3,059 | 3,051 | 3,051 | | 966 Environmental services | 5,339 | 5,356 | 5,244 | | 967 Planning and development services | 1,398 | 1,399 | 1,397 | | 971 Police services | 11,840 | 11,734 | 11,818 | | 972 Fire and rescue services | 2,224 | 2,265 | 2,215 | | 975 Central services (excluding Non-distributed costs - retirement benefits) | 2,585 | 2,532 | 2,581 | | 976 Non-distributed costs - retirement benefits | 540 | 486 | 539 | | 978 Other services | 387 | 404 | 387 | | 981 External Trading Accounts net surplus/deficit | -199 | -200 | -199 | | 982 Internal Trading Accounts net surplus/deficit | -28 | -31 | -28 | | 983 Provision for repayment of principal | 1,910 | 1,910 | 2,061 | | 984 Interest: external payments | 3,098 | 3,092 | 3,446 | | 985 Private Finance Initiative (PFI) schemes - difference from service charges | 34 | 34 | - | | 986 Pensions interest cost and expected return on pensions assets | - | 5,397 | - | | 987 Appropriations to/from pensions reserve | - | -5,239 | - | | 989 TOTAL (Total of lines 961 to 987) | 104,320 | 104,320 | 104,320 |

(a) Figures are for individual service lines and do not include additions such as some housing benefits which are included in Table 1.

**Formula Grant** – the main channel of government funding. This includes **Redistributed non-domestic rates**, **Revenue Support Grant**, Police grant and General (GLA) grant. The distribution is determined by the Formula spending shares formulae, also taking account of authorities’ relative ability to raise council tax and the floor damping mechanism. There are no restrictions on what local government can spend it on.

**Redistributed non-domestic rates** – non-domestic rates which, having been paid into the non-domestic rating pool, are redistributed between local authorities on the basis of population, as part of **Formula Grant**.

**Revenue expenditure** (line 795) - is equal to total net current expenditure (line 749), plus capital financing costs and a few minor adjustments, but excludes expenditure financed by grants outside **Aggregate External Finance**. Revenue expenditure is financed by grants inside Aggregate External Finance, council tax and authorities' reserves.

**Revenue Support Grant** – a general grant which replaced rate support grant in 1990-91. Now it is distributed as part of **Formula Grant**. Data quality

1. This Statistical Release contains National Statistics and as such has been produced to the high professional standards set out in the National Statistics Code of Practice. National Statistics products undergo regular quality assurance reviews to ensure that they meet customer demands.

2. The information for 2011-12 in this release is derived from Department for Communities and Local Government (DCLG) / CIPFA Revenue Account (RA) budget forms and is based on valid returns from all 444 local authorities in England.

3. Figures are subjected to rigorous pre-defined validation tests both within the form itself, while the form is being completed by the authority and also by Department for Communities and Local Government and CIPFA as the data are received and stored.

4. Finally, the release document, once prepared, is also subject to intensive peer review before being cleared as fit for the purposes of publication.

5. Please note that the figures in this release have not been adjusted to take into account changes of responsibility between 2010-11 and 2011-12.

Uses made of the data

01. The data in this Statistical Release are essential for a number of different purposes. A central and immediate purpose is to provide the Secretary of State, Ministers, HM Treasury and the Office for National Statistics with the most up to date information available on local authority revenue spending for decision making. The budget estimates on a non-IAS19 basis are used by the Office for National Statistics in compiling the Public Sector Finances and National Accounts, which are used to set fiscal and monetary policy.

02. The data are also important sources for various evidence based policy and financial decisions and answering numerous parliamentary questions. In addition it is used by local authorities and their associations, regional bodies, other government departments, members of the business community and the general public.

03. The Audit Commission supports auditors by supplying them with a variety of data and indicators. Auditors use this information to inform their Value for Money conclusions. The conclusions are mainly based on outturn expenditure data however the Revenue Account budget data are used by auditors to help plan their Value for Money work for the following year.

04. Comments and feedback from end users for further improvement or about your experiences with this product will be welcomed. Please send all views to: lgf1.revenue@communities.gsi.gov.uk Background Notes

05. This Statistical Release can be found at the following web address: http://www.communities.gov.uk/localgovernment/localregional/localgovernmentfinance/statistics/revenueexpenditure/

06. For press enquiries about this Statistical Release, please contact the Local Government press desk on 0303 444 0444 or email press.office@communities.gsi.gov.uk. For other enquiries, please contact Osman Beg on 0303 444 4228 or email lgf1.revenue@communities.gsi.gov.uk.

07. Timings of future releases are regularly placed on the Department's website, http://www.communities.gov.uk/corporate/researchandstatistics/statistics/publicationschedule/ and on the National Statistics website, http://www.statistics.gov.uk/releasecalendar/currentreleases.asp

08. For a fuller picture of recent trends in local government finance, readers are directed to Local Government Finance Statistics England No. 21 2011, which is available in hard copy from Communities and Local Government Publications, Cambertown House at product@communities.gsi.gov.uk (Tel. 0300 123 1124) and electronically from the Communities and Local Government website: http://www.communities.gov.uk/documents/statistics/pdf/1911067.pdf.

09. The CIPFA Finance and General Statistics publication also contains detailed information on local government finance.

10. The Scottish, Welsh Assembly and Northern Ireland Government also collect revenue budget data. Their information can be found at the following websites:

    Scotland: http://www.scotland.gov.uk/Topics/Statistics/Browse/Local-Government-Finance

    Wales: http://wales.gov.uk/topics/statistics/headlines/localgov2010/100623/?lang=en

    Northern Ireland: http://www.doeni.gov.uk/index/local_government/local_government_funding.htm

Symbols and conventions

… = not available 0 = zero or negligible − = not relevant || = discontinuity (R) = revised since the last statistical release

Rounding Where figures have been rounded, there may be a slight discrepancy between the total and the sum of constituent items.

ISBN: 978-1-4098-3029-0